Baazar Style Retail IPO Subscription Status: The IPO of fashion retailer Bazaar Style Retail has received bumper subscription. This IPO has been subscribed 40 times till 4 pm on its last day on 3 September. However, there has been some decline in the GMP of the IPO. The company had fixed the price band for the IPO from Rs 370 to Rs 389 per share. The size of the IPO is around Rs 835 crore. Famous investor Rekha Jhunjhunwala also has a stake in Bazaar Style. Shares will be allotted in this IPO on 4 September, while its listing will be on 6 September.
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Baazar Style: Subscribed 40 times till now
The IPO of Bazaar Style has been subscribed more than 40 times till 4 pm on its last day. 35 percent of the IPO is reserved for retail investors and it has been subscribed 8.66 times so far. 50 percent of the IPO is reserved for Qualified Institutional Investors (QIB) and this part has been filled 81.83 times so far. Whereas about 15 percent of the share is reserved for non-institutional buyers (NII) and it has been filled 59.28 times. In this IPO, the portion reserved for employees has received 34.17 times subscription so far.
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GMP reduced to 15 percent
The craze for the IPO of Bazaar Style in the grey market has subsided somewhat. The unlisted stock of the company is at a premium of Rs 60 in the grey market, which is a 15 per cent premium over the upper price band of Rs 389.
Plans to target focused markets
Brokerage house Nirmal Bang says that the company has a good market share in West Bengal and Odisha due to its focus on growth in tier 3 and tier 4 cities. The company has gained strength in understanding and creating affordable products for its customers in the last few years and has increased its customer appeal.
The company plans to achieve growth from its existing core markets as well as target other focused markets. While on a P/E basis of 135 times FY24 earnings, the issue seems expensive, however, on an EV/EBITDA basis of 21.5 times FY24 earnings, it looks reasonable compared to the industry average of 28 times.
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Fast-growing value retailer
Brokerage house Swastika Investmart says that Bazaar Style Retail has been the fastest growing value retailer between 2017 and 2024. It has shown improvement on the margin and growth front in both its top and bottom line. The P/E valuation of the IPO is at a high level. Although high valuation may be a hindrance, strong market demand is expected to support a positive listing. Investors may choose to prioritize listing gains, but a cautious approach is necessary due to valuation.
Investments of Rekha Jhunjhunwala
Rekha Jhunjhunwala has about 7.69 percent stake in this company. Before the IPO, she had 5,446,240 shares of the company. Out of these, she has sold 2,723,120 shares through OFS. In this way, she has received about Rs 106 crore from stake sale in the IPO. The size of this IPO is Rs 834.68 crore.
(Disclaimer: The views or advice on the stock are given by experts and brokerage houses. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)
